IncomeDiary.com

How Pros Make Money Online

Income Diary

10 Winning Lessons from “Maverick Entrepreneur” Mark Cuban

By:     Topics: Entrepreneurship

Mark Cuban knows how to win.

Since Cuban bought the Dallas Mavericks NBA basketball team in 2000, the team’s winning percentage has gone from 40% to 69% and in 2011 the Mavericks won their first ever NBA championship.

Cuban also has a winning record in business. Born into a working class family, Mark became a billionaire by starting and selling tech companies such as MicroSolutions and Broadcast.com.

Keep reading for ten winning lessons from Cuban’s $2.3 billion success.

#1 Get Paid to Learn

Cuban paid his way through school any way he could. He worked as a disco instructor, party promoter, and even started a chain letter that earned about $1,100.

After graduating from business school, he didn’t stop learning:

“In every job, I would justify it in my mind, whether I loved it or hated it, that I was getting paid to learn and every experience would be of value when I figured out what I wanted to do when I grew up.”

From “How to Win at the Sport of Business”

If your career or business isn’t yet what you want it to be, adopt Cuban’s attitude and think of it as an opportunity to continue your education. One day you’ll be able to use what you learn to accomplish your ultimate goals.

#2 Visualize Your Success

“When I got to Dallas, I was struggling – sleeping on the floor with six guys in a three-bedroom apartment. I used to drive around, look at the big houses, and imagine what it would be like to live there and use that as motivation.”

Mark Cuban

From “How to Win at the Sport of Business”

In 1982, Cuban moved to Dallas, Texas and got a job as a bartender. What he really wanted to do was run his own business and retire by the age of 30. He told himself that he would do it “every day.”

After getting fired from his jobs as a salesperson at Your Business Software, Cuban decided the time was right to pursue his dream. He started his own software selling company, MicroSolutions, which he sold in 1990 for $6 million.

At the age of 32, Cuban was a millionaire who could afford to live in the big houses that he used to drive by as a down-on-his-luck bartender. More importantly, he was living the life of his dreams.

#3 Effort is the Only Requirement

In sports, the only thing a player can truly control is effort. The same applies to business. The only thing any entrepreneur, salesperson or anyone in any position can control is their effort.

Mark Cuban,

From “How to Win at the Sport of Business”

Three years after starting MicroSolutions, business was good. Cuban was set to earn $60,000 that year and he was only 27 years old.

Even though he felt successful, Cuban saw major room for improvement. The PC industry was in a slump and local area networks had yet to take off like MicroSolutions had hoped. Cuban’s solution was to “recommit to getting up early, staying up late and consuming everything [he] possibly could to get an edge.”

The behavior of your industry, your clients, and your competitors is mostly outside of your hands. It’s pointless to become frustrated with things that you can’t control. Instead, focus on maximizing your effort.

#4 Sell High

In 1995, a few years after selling MicroSolutions, Cuban decided to help Chris Jaeb and Todd Wagner launch AudioNet, an Internet radio company that would soon be rebranded to Broadcast.com. Cuban became a billionaire overnight when they sold the company to Yahoo! in 1999 for $5.9 billion in stock.

With all the buzz building around Internet companies, it was the perfect time to sell. Just a year later, the dot-com bubble would burst and the perceived value of Broadcast.com would plummet.

Make sure you sell your company at the right time. Wait until the market is high for your industry in order to get the most money for your hard work.

#5 Diversify

After the sale of Broadcast.com, Cuban was left holding a huge chunk of Yahoo! stock. That stock that was not immune to the dot-com bubble either: it went from being traded at $118.75 a share in January 2000 to a measly $4.05 a share by September 2011.

Luckily for Cuban, he had already taken steps to diversify. Cuban explained to Fast Company Magazine:

“After we sold Broadcast.com, I hedged my stock with synthetic indexes, in case the market cratered in the six months before I could hedge my actual Yahoo shares. It cost me $20 million, but I protected what I had.”

Mark Cuban

The only way that Cuban was able to hold onto his fortune was by making sure all of his eggs weren’t in the same basket. After becoming a billionaire, Cuban immediately began spreading his wealth around in different industries: becoming the owner of the Dallas Mavericks, Landmark Theatres, Magnolia Pictures, and the chairman of the HD cable network HDNet.

#6 Don’t Focus on Exit Strategy

Cuban has built his fortune by building successful companies and then selling them when the time is right. Even so, he insists that he’s always looking for a “cash-in-pocket strategy, not an exit strategy.” When Business Insider asked Cuban about how entrepreneurs should think about their exit strategies, he said:

“They shouldn’t. They should focus on building the best possible business. If you are great, people will notice and opportunities will appear.”

The best exit strategy is to build a company with long-term, intrinsic value.

#7 Be a Loudmouth

“In the past people used to tell me to shut up a bit. But what I believe is to put out your opinion and let everyone else react. If I’m wrong I’m wrong. People are afraid to put out their opinions and get push back.”

Mark Cuban

I’ve written about the value of keeping your mouth shut and letting your actions speak for themselves. But Mark Cuban proves there are exceptions to this rule.

Cuban sometimes speaks first and thinks later – and the result is that he’s put his foot in his mouth more times than he can count. But while Cuban’s big mouth often gets him in hot water with the media, it also ensures that he gets “push back”:  a constant stream of reactions from the outside world. For Mark, the tradeoff is worth it.

If you’re natural tendency is to be a loudmouth, then you can benefit from embracing it. Just be ready to apologize.

#8 Get Free Press

Cuban has appeared as himself in TV shows like Entourage, The Colbert Report, and The Simpsons. He’s also had recurring roles on reality shows like Shark Tank and Dancing with the Stars.

Collectively, Cuban has reached tens of millions of Americans through these programs. That means greater awareness of Cuban and his personal brand – which ultimately can be leveraged to help Cuban’s business ventures.

#9 Know Your Business Better than Anyone

“You got to be the smartest guy in the room about your product.”

Mark Cuban

Cuban spends so much time researching his industries that he told TechCrunch, “I need a break because I spend so much time reading. If there’s something I get into, I won’t stop. I read a lot of industry trade publications for cable now.”

Cuban believes that, when it comes to creating a successful company, knowledge is power. His advice is simple, yet ambitious: “Know your business and industry better than anyone else in the world.”

#10 Do Something Different

“When you’ve got 10,000 people trying to do the same thing, why would you want to be number 10,001?”

Mark Cuban

As an angel investor, Cuban is always looking for companies that demonstrate a clear sense of market differentiation. In fact, he immediately dismisses any companies that aren’t carving out their own niche: “Wherever I see people doing something the way it’s always been done, the way it’s ‘supposed’ to be done, following the same old trends, well, that’s just a big red flag to me to go look somewhere else.”

If you want to repeat something that’s already been done, then you open a franchise. If you want to be a successful entrepreneur like Mark Cuban, you’ll have to do something different.

Stop Icon

THE 'THING' THAT MAKES THIS WEBSITE THE MOST MONEY

I make more money from sending emails to my subscriber list then any other monetization technique.

PopUp Domination Increased Our Email Subscribers By Over 524%" - Michael Dunlop, IncomeDiary

Customers regret not using PopUp Domination sooner. The impact is that big.

Here are some reasons to start using PopUp Domination today:

  • We current have over 35,793 websites currently using this tool to drastically increase their subscribers.
  • Features include Click for PopUp, Exit PopUps, A/B Testing & Analytics!
  • Comes with five different high-converting themes, each with 13 different color options. Add images and customize all text!
Get Instant Access
Click here to find out more.

Leave a Comment / Read Comments

  • revivedafrikana

    I enjoyed reading this alot. I admire mark on the shark tank. he is very smart

    • http://nextlevelink.com Nick Scheidies

      The entrepreneurs on that show must feel pretty lucky to get advice and mentorship from Mark. Thanks for the comment!

  • http://www.MarketingMaverick.com/blog Ken Hammond @MarketingMaverick.com

    Nick… thanks for the awesome post about our fellow maverick Mark!

    I didn’t know the story about MicroSolutions, I always thought his first big win was with broadcast.com

    If you haven’t seen SharkTank… it’s a business lesson in every show. It’s our Friday Family night tradition.

    Mark is an amazing business mentor that I follow any chance I can get.

    – Ken

    • http://nextlevelink.com Nick Scheidies

      Yeah, MicroSolutions isn’t as well known because it’s so small in comparison. Still, six million is nothing to sneeze at. I actually haven’t seen Shark Tank (no TV) but I’m glad that you and your family get so much from it.

  • Kuan

    Very inspiring post..;)
    Mark Cuban must be somekind of “mourinho”-big mouth +very brilliant!!

    The sentence “intrinsic value” really sounds cool!

    • http://nextlevelink.com Nick Scheidies

      So “Mourinho” means a person who has a big mouth but it brilliant? I don’t think there’s a word like that in English! What language is it?

      • Kuan

        Im Blasted…haha..anyway Nick,
        Jose Mourinho is the manager of RealMadrid in soccer sport.
        You are right Nick. Thanks for the correction :)

  • http://brianfarello.com Brian Farello

    Hey Nick,

    I really enjoyed this post. Most people know Mark Cuban as being brash and a loudmouth instead of the story of how he became successful. Although he may put people off, it’s hard to argue with how much he’s been able to accomplish and how he carries out business.

    • http://nextlevelink.com Nick Scheidies

      Yep – I personally disliked Mark Cuban for a long time. But I’ve come to respect his willingness to (loudly) voice his opinions.

  • http://fastforwardtomarriage.com Gill

    Great article. Marc Cuban is definitely a very interesting guy and a lot can be learned from him.

  • http://www.CraneConsultingHouse.com David

    Hey Nick,

    I have read numerous success summaries/stories, I just have never gotten a good hold of Mark Cuban’s. Thanks for sharing this.
    The point about effort being the only thing you can control, is really true because clients will keep cancelling or changing goalposts but your effort can make the difference.
    Thanks

  • http://www.bizoppsbuzz.com Owen

    I enjoyed reading this post, Nick. I have never heard of Mark Cuban before nor do we get the Shark Tank over here in Australia. He is surely an inspiring guy. I will look him up on the internet but your post probably sums up the man. Thanks heaps.
    Can I link this post on my site?

    • http://nextlevelink.com Nick Scheidies

      Sure thing.

  • Hamza Siddiqui

    Great article Nick…My question is how do you get the idea of writing such great articles..More importantly I want to know that as you have given references from the interview of the mark…Do you have read them before during your reading time or you researched them specifically for this post?

    I’ll be waiting for the answer Nick.

    Thank You In Advance :).

    Hamza Siddiqui

    • http://nextlevelink.com Nick Scheidies

      Most of the information and quotes for these articles I gather during research. Thanks for your question.

  • Paulina Brusca

    I needed this today! I’d let myself judge Mark Cuban based on very little information. I am frequently encouraged to dial down my enthusiasm and be less driven but usually the result of that is just losing momentum. Let’s here it for the loud mouths!
    Great Article and I just read the Jay-Z one also! It’s just what I needed to read.

  • Sherif

    I loved the posts . . . the number 10, (do something different) its like thinking outside the box, doing it differently from the rests.
    thanks Nick

  • Young Online Marketer

    I’m big fan to your blog and i think your posts are very helpful. Thanks for sharing.

Hire Awesome Designers and Developers Who Could’ve Started Yesterday

AwesomeWeb is a simple freelance marketplace that connects awesome designers & developers with awesome clients.

Visit Site IncomeDiary Review

Sell More Products to More Customers

The only shopping cart built for boosting revenue is finally here. SamCart’s mission is to give marketers a shopping cart that not only looks beautiful, but also helps them sell more of their products and boost profits so they can make a bigger impact for their customers.

Visit Site IncomeDiary Review

Create High Converting Landing Pages, Sales Pages & Membership Portals

Now you can create almost any kind of pages for your business inside WordPress. Their revolutionary Element Browser system contains over 40 different elements, each with different styles and options so you can add almost unilmited functionality to your page.

Visit Site IncomeDiary Review